According to Tyngsboro, Mass.-based Beacon Power Corp., the Federal Energy Regulatory Commission (FERC) has approved energy-storage-based market rules for the New York Independent System Operator (NYISO) power grid. The favorable ruling by FERC is the second such decision in the last five months, following its December 2008 approval of an energy-storage specific tariff for the Midwest ISO.

NYISO is now the first grid operator in the country both to establish FERC-approved energy storage-based market rules and to complete the related technical implementation of software and control systems.

NYISO's market rule changes are in response to FERC Order No. 890, which is intended to promote greater competition in electricity markets, strengthen the reliability of the grid and allow non-generation resources - including Beacon's flywheel technology - to participate in regulation markets on a non-discriminatory basis.

"This decision again shows that FERC recognizes the value of energy storage on the grid, and that grid operators are serious in their efforts to apply its benefits," says Bill Capp, Beacon president and CEO. "NYISO's regulation tariff conditions are closely aligned with the unique capabilities of energy storage, which underscores the importance the ISO places on the deployment of our technology."

In its decision, FERC stated: "As noted in NYISO's proposal to enhance operational control of New York's wind resources in Docket No. ER09-802-000, wind resources' output changes and such variability increases the need for regulation service that can respond quickly to changes in output. We recognize that these [limited energy storage resources] LESRs can assist in the effective integration of wind resources into the New York control area. Further, the integration of LESRs in the regulation service market should improve NYISO's control performance and assist it in meeting or exceeding NERC control performance criteria."